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VA SETTLES CLASS-ACTION LAWSUIT OVER 2006 LAPTOP

THEFT FOR $20 MILLION -- Veterans will be reimbursed for

out-of-pocket expenses caused by theft. Any remaining

funds will be donated to vets' charities.

Story below: 

Your comments accepted at bottom of page.

Share story/email link.
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by Larry Scott

Let's go back to the Spring of 2006.

Veterans went into a panic when it was discovered that a laptop computer containing the personal information of millions of veterans and many active-duty military members had been stolen.

That laptop was recovered and the FBI determined no data had been breached.

But, many vets, believing their information to be at risk, signed up for credit protection services.

For a very complete background on this incident, go to this page...
http://www.vawatchdog.org/va%20da
ta%20theft%20news.htm

A number of lawsuits were filed against the VA.  They were later consolidated... and today, we have the outcome.

It's a $20 million settlement.  And, the VA must be congratulated for working out this settlement.

In simple terms, the money will be used to reimburse vets for any out-of-pocket expenses caused by the laptop theft, such as buying a credit protection plan.  Any funds left over go to vets' charities.

In the near future, we will have info on how to sign up for reimbursement.

Below is a press release regarding the settlement.

Here is the motion for preliminary approval (download).

Here is the settlement agreement (download).

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VETERANS AGREE TO SETTLE LAWSUIT ABOUT THEFT OF COMPUTER EQUIPMENT REPORTED TO CONTAIN PERSONAL INFORMATION

WASHINGTON, DC --- Attorneys for a group of veterans filed papers today informing the Court that a settlement has been reached resolving their lawsuits for alleged violations of the Federal Privacy Act stemming from the May 3, 2006, theft of computer equipment reported to contain personal information.

The agreement filed with the United States District Court for the District of Columbia contains a proposed $20 million settlement with the United States Department of Veterans Affairs and certain Department employees in their official capacities. The settlement will fund payments for actual damages incurred by veterans, some spouses of veterans, and military personnel, as a result of the May 2006 theft. Remaining funds, if any, will be donated to veterans’ charities agreed to by the parties (the Fisher House Foundation, Inc. and The Intrepid Fallen Heroes Fund).

On May 3, 2006, computer equipment reportedly containing personal information of military veterans, some spouses of veterans, and military personnel, was stolen from the home of an employee of Veterans Affairs. The equipment reportedly contained such information as names, social security numbers, and dates of birth for up to 17.5 million individuals, as well as some disability ratings. The data did not include any health records or financial information.

The equipment was later recovered on June 28, 2006, by the Federal Bureau of Investigation, whose review of the equipment indicated that the data had not been accessed. The lawsuit alleges that the Defendants violated federal law by not properly securing the information. The Defendants deny that they did anything wrong and the settlement does not mean that any law was violated. The Class includes all veterans, spouses of veterans, and military personnel who had actual damages during the Recovery Period that were directly related to the theft of computer equipment which was reported to contain personal information from the home of a VA employee on May 3, 2006.

The Class also includes all representatives, heirs, administrators, executors, beneficiaries, agents, and assigns of such individuals. Actual damages include out-of-pocket expenses incurred as a direct result of the theft, including those that were: expended to protect or monitor personal or financial information; or the result of physical symptoms of severe emotional distress. Out-of-pocket expenses may include, for example, the purchase of credit monitoring to protect against identity theft.

Those affected by this settlement can send in a claim form to ask for a payment, or they can ask to be excluded from, or object to, the settlement and its terms.

Notices informing Class Members about their legal rights are scheduled to appear in consumer and military publications in the United States. A toll-free number will be established along with a settlement website where notices, a claim form, and the settlement agreement may be obtained.

The Court has appointed John Murdock and Jeffery Goldenberg, Murdock, Goldenberg, Schneider & Groh, LP of Cincinnati, Ohio; Douglas Rosinski and Donald Cockrill, Ogletree, Deakins, Nash, Smoak & Stewart, P.C. of Columbia, South Carolina; Marc Mezibov, The Law Offices of Marc Mezibov of Cincinnati, Ohio; Gary E. Mason, The Mason Law Firm, L.L.P. of Washington, District of Columbia; and Mark Smilow, Weiss & Lurie of New York, New York as Class Counsel to represent the Class.

Information on the forms and deadlines for exclusions or objections and to file a claim will be forthcoming.

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Below is a story about this from the AP.

Story here... http://www.kans
ascity.com/449/story/1003914.html

-------------------------

VA agrees to settle for $20M for data theft

By HOPE YEN
Associated Press Writer

The Veterans Affairs Department agreed Tuesday to pay $20 million to veterans for exposing them to possible identity theft in 2006 by losing their sensitive personal information.

In court filings Tuesday, lawyers for the VA and the veterans said they had reached agreement to settle a class-action lawsuit originally filed by five veterans groups alleging invasion of privacy. The money, which will come from the U.S. Treasury, will be used to pay veterans who can show they suffered actual harm, such as physical symptoms of emotional distress or expenses incurred for credit monitoring.

U.S. District Judge James Robertson in Washington must approve the terms of the settlement before it becomes final.

"This settlement means the VA is finally accepting full responsibility for a huge problem that continues to worry millions of veterans, retirees, service members and families," said Joe Davis, spokesman for Veterans of Foreign Wars, which was not involved in the lawsuit.

VA spokesman Phil Budahn said: "We want to assure veterans there is no evidence that the information involved in this incident was used to harm a single veteran."

The lawsuit came after a VA data analyst in 2006 admitted that he had lost a laptop and external drive containing the names, birth dates and Social Security numbers of up to 26.5 million veterans and active-duty troops.

The laptop was later recovered intact, but a blistering report by the VA inspector general faulted both the data analyst and his supervisors for putting veterans at unreasonable risk. The data analyst had lost the information when his suburban Maryland home was burglarized on May 3, 2006, after taking the data home without permission.

The VA employee promptly notified his superiors, but due to a series of delays, veterans were not told of the theft until nearly three weeks later, on May 22. Then-VA Secretary James Nicholson later said he was "mad as hell" that he wasn't immediately told about the burglary.

According to the proposed settlement, veterans who show harm from the data theft will be able to receive payments ranging from $75 to $1,500. If any of the $20 million is left over after making payments, the remainder would be donated to veterans' charities agreed to by the parties, such as the Fisher House Foundation Inc. and The Intrepid Fallen Heroes Fund.

Attorneys for the veterans groups said notices about the proposed settlement will be published in magazines and newspapers around the country, with a toll-free number and other contact information for veterans.

Five veterans groups filed a class-action lawsuit in June 2006 in U.S. District Court in Washington on behalf of all veterans, seeking $1,000 in damages for every veteran whose information was compromised in the computer theft.

"This is a very positive result," said Douglas J. Rosinski, an attorney representing the veterans groups. "A lot of hard work went into finding a resolution that all the parties could be proud to say they were a part of bringing about."

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posted by Larry Scott
Founder and Editor
VA Watchdog dot Org
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